by Christopher Makaza
The country`s power utility company, Zimbabwe Electricity Supply Authority (ZESA) is set to secure an additional power supply from Eskom, South Africa`s utility company, Mozambique`s Hydro Cahora Bassa (HCB) and Electricity de Mozambiue (EDM) after securing a US$80 million legacy debt clearance facility from Afreximbank.
The deal with Afreximbank is supposed to be concluded by, 31st January 2020.
According to a contact within Zesa, Zesa and Eskom are allegedly negotiating power inputs without a third part after the former had managed to reduce Eskom electricity debt to US$6 million by December last year. The discussions have also been necessitated by the US$80 million loan facility.
Zesa was set to receive 200MW firm power supply from Eskom through a third part Afrochine Energy which is a division of the local Afrochine Chrome mining company a subsidiary of Afrochine International Limited in Hong Kong at a tariff of US$8,5c KW/ hour.
Zesa according to the discussion, needs additional 350 MW firm power supply. Currently Zesa is receiving 50 MW firm power supply and 350 MW non-firm power supply from Eskom. If successful, the new deal will reduce tariffs to around US5c per KW.
Zesa is also trying to secure more electricity supply from HCB which is currently supplying 50MW firm power. According to the contact, if the deal is successful Zesa will also use part of the US$ 80 million to settle the US$33 million it owes HCB so that HCB will give Zesa an additional 100 MW.
The contact also said part of the loan will be used to clear US$10 million to EDM so that it will also give an additional 100 MW to Zesa.
Currently local power generation is at 623 MW from 2 electricity power stations namely Kariba and Hwange. Kariba is currently generating 246 MW due to limited water allocation while Hwange is generating 377 MW as some of its plants are currently being maintained. Bulawayo, Harare and Munyati power stations are not generating power due to coal shortages.
